But Ferguson, who this season guided United to their eighth Premiership title in 11 seasons, still has two years left on his contract and believes the club can repeat their European success of 1999.

Ferguson said: “We can be proud of what we have contributed to the Champions League over the last couple of seasons, and I honestly believe that we are very close now to where we want to be.

“We are improving all the time and I think the only thing we lack now is experience – particularly in defence.

“The game in Madrid illustrated just what is so good about Manchester United, and the things we have to improve on.

“My defenders didn’t want to be left alone with the likes of Ronaldo or Raul. They didn’t have the belief to handle them one-on-one.

“I know they are good enough to do it. I know they can handle the best players in the world and in the next couple of seasons they will start to share that belief.

“I’ve got another two years left on my contract and I think we are definitely capable of winning the Champions League in that time.”